Last time we covered reasons for being in the GST system. Let’s look at the other side, if your turnover is under $60,000 pa.
If your customers are individuals rather than corporates, your price may be lower if you don’t add GST. Especially if you run a labour-based business and don’t buy many supplies.
With lawn mowing, for instance, most customers shop on price. Being outside GST may make you more competitive, gaining you market share.
Steering clear of GST also reduces compliance costs. Even if you do your own GST returns with great software like Xero, it takes time. And when your accountant does your annual return, their fee should be less if they don’t have to process GST.
Next time we’ll discuss how often you should do your return if you are registered for GST.
These are general comments. You should take independent advice before acting.